Far too many business owners baulk at the perceived costs of
engaging external advisors to assist them to improve the performance of their
businesses. In the long run, this reluctance to invest in external advice, generally proves detrimental to the profitability and sustainability of their
businesses.
As a questionable but understandable cost saving measure, many
owners of established businesses tend to rely on web-based information sites
such as http://scoop.it/t/business-improvement
or Government Small Business sites such as http://business.gov.au
in preference to engaging external advisors.
Whilst accessing free advice from reputable online sites is
a step in the right direction, the main problem with this approach is that
often, the key link between the advice offered and the skills available in the
relevant business to successfully apply the advice, is missing.
Sometimes, less experienced business owners, access
information from sites where the business information on offer is not only of
poor quality but is often wrong, and acting upon such advice, can create additional
problems.
The other aspect which limits the value of free online
advice is the assumptions made by the business owners or their managers, as to
the actual problem that they are seeking information to help them to resolve.
It is often the case, that a symptom of a problem is being
addressed, where a more complete, focussed and analytical investigation by an
experienced external advisor, would establish the real underlying problem, one
that must be resolved before the business can move forward.
Aligned to the perceived cost of external advisors being a
barrier to greater engagement between businesses and external advisors, is a
poor understanding by many businesses of the benefits that external advisors
bring to any assignment, and the real return on investment that building a
short term or ongoing relationship with an external advisor, can provide.
The real benefits that external advisors bring to any
business which has the foresight to engage them include;
1)
Fresh
and different perspectives
External advisors are usually
very experienced, well qualified, and through interacting with numerous
businesses in a variety of industries over many years, they can look at your
business from multiple perspectives, as distinct from your own limited
perspective.
2)
Unbiased
viewpoint
An external advisor is independent,
unaligned to prevailing points of view within a business, and can call it
exactly as they see it, usually without fear or favour. They are able to resist
filtering information via the cultural bias of the prevailing culture, and as
such, can readily spot the obvious.
3)
Greater
and often more up to date expertise
Good external advisors generally
hold relevant business related tertiary qualifications, are usually continuous
learners, and generally hold memberships of relevant professional bodies that
assist them to stay up to date with current business thinking, legislative
changes and relevant technological advances.
4)
Broader
experience base
External advisors in general,
work from a base of extensive experience, often across many industries, and most
have held senior positions in listed and unlisted companies, as well as private
companies, before becoming business advisors. They also come with an extensive
base of contacts that they can draw upon depending on the situations they
encounter.
5)
Time
management
Your time is vital, and the more
of it you can spend on areas which utilise your strengths, the better off your
business will be for this focus. An external advisor, by focussing on what they
do best, will complete assignments much faster that you can, and the results
they deliver will usually be time effective in implementation, thereby saving
you even more valuable time.
6)
Level
of analytical skills
To survive in the business world,
analytical skills of a high order are a pre-requisite for any professional
business advisor. The skill to ask the right questions, of the right people,
and analyse the information provided, before making recommendations or
assisting to rectify a problem, is a skill not easily, or quickly, attained.
7)
Add
more weight to management change initiatives
Any management team attempting to
introduce change initiatives, will find that support for the changes in the
form of well justified recommendations coming from an external advisor, will
assist greatly in selling those changes into the rest of the business.
8)
Transference
of skills and methodologies
External advisors undertaking
assignments in any business will interact with key employees, who will observe
both the skills displayed by the external advisor, and the methodologies they
utilise as they proceed, thereby obtaining skills and knowledge they would not
otherwise had obtained.
9)
Stakeholder
evidence of your mindset
All businesses have stakeholders
and whether they shareholders, vendors, suppliers, customers, clients or
employees, they will notice the engagement of external advisors. The mindset of
a business owner or manager who is willing to engage external advisors, is
different than that of someone unwilling to do so, and engaging external
advisors is a clear and positive mindset indication.
10) Profitability enhancement
To build a successful reputation,
leading to future engagements, an external advisor is very conscious of the
need to deliver tangible and measurable outcomes. As a consequence, the usual
outcome of the involvement of an external advisor, are changes which once
bedded down, positively impact on bottom line performance.
Clearly understanding the range of benefits that an external
advisor can bring to a business, allows a business owner to conduct a more
balanced assessment of the potential return on investment available, from
engaging a suitable external advisor.
In most cases, a balanced assessment will establish that the
returns on offer will fully justify a business owner’s decision, to advance
down the path of engaging an external advisor.
What problems are you currently struggling to address in
your business, that could benefit from a fresh perspective delivered by an
experienced, well qualified and independent, external advisor?
Perhaps it is time for you to throw a key problem or two,
and a dollar or two, in the direction of an external advisor, and find out what
a difference one can make in assisting you to improve the overall performance
of your business.